Using resources to fix bad credit or Rebuilding your poor credit history is a situation that many people unfortunately have to deal with. What makes it even harder is that there are companies out there that will take advantage of your financial situation. Many people are not able to pay their bills the moment they arrive, so don’t get discouraged if this is you. Even proper planning and calculating can’t stop the rising costs of some bills. Rebuilding your credit can seem a daunting experience, but there are sources out there to help you.
What is most stressful about trying to repair bad credit is not knowing where to start, or where to go for advice. Fortunately, there are companies that offer credit repair kits, which can get you started in the right direction. Unfortunately, these kits can be expensive, and when you’re trying to get out of debt, having to pay to get out of debt doesn’t make a lot of sense.
If you have done your research, however, you might have found out that there are places you can get a free credit repair kit. Your local library is the best place to go to find unlimited information that is free to the public. Most libraries have credit repair kits, credit repair books, or debt management solution books. The library is a place full of useful resources. The library also has copy and fax machines available so you can make copies of letters you can write to your creditors that are found in the credit repair guide kit. Making those copies, filling them out, and sending them to your creditors is the first step to becoming financially secure.
Most libraries will also have guides for filing bankruptcy. If you have exhausted all of your resources this might be the only answer left for you. In most cases you can do a Pro Bono Bankruptcy, which means you will represent yourself in the courtroom. You can file for a Chapter 7 Bankruptcy, which means you will have monthly installments to make, or you can file for a Chapter 13 Bankruptcy, which means that the courts wipe out all your debts. Remember that bankruptcies stay on your credit history for ten to fifteen years. Bankruptcies should be avoided whenever possible, but it is there as a last resource for those who absolutely need it. Sometimes people who have filed for bankruptcy are still able to get mortgage and car loans. Knowledge is one of the resources to getting yourself out of debt.
Another option for some people is debt consolidation. Try to avoid it if possible because it will cost you money, and may only increase your debt. You might want to consider a debt counselor from a respected organization. You can check out any company before doing business with them by looking them up on the Better Business Bureau website. Any company that tells you they can get you out of debt in a short amount of time, shouldn’t be trusted.
The fact is that past unpaid bills will still show up on your credit report – only the word “resolved” will follow the debt. You can get copies of your credit reports from TransUnion, Equifax, and Experian. Knowing where your credit is can help you know where to start repairing your credit score.